How are AD's making any money if there are no watches to sell?

[vtsnowplow]

How are AD's making any money if there are no watches to sell?

No Rolex SS, No Tudor, No Patek SS, AP models are tough to find.

These AD's must really be seeing a downturn in business if there is no inventory to be had.

[willbangor]

Sold them all to greys so they've made their money and got rid of a load of date just crap to boot.

[Jacobson]

Plenty SS DJs and PM pieces for them to sell. DJs are big sellers.

[Aldwyn]

I dont know about your AD, but mine sells all sorts of jewelry, not just watches. So I would imagine they are making their money from selling other items.

[Mik8yu]

The mark up. Sale one Daytona the premium is worth another date just


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[Devildog]

Originally Posted by vtsnowplow

How are AD's making any money if there are no watches to sell?

No Rolex SS, No Tudor, No Patek SS, AP models are tough to find.

These AD's must really be seeing a downturn in business if there is no inventory to be had.

https://www.rolexforums.com/showthread.php?t=631555

[jsausley]

Originally Posted by vtsnowplow

How are AD's making any money if there are no watches to sell?

No Rolex SS, No Tudor, No Patek SS, AP models are tough to find.

These AD's must really be seeing a downturn in business if there is no inventory to be had.

Just because stainless steel watches aren't sitting in the display doesn't mean there aren't watches to sell. Right now stainless watches are sold as soon as they come in. There was a post here last week about an AD that received 8 watches on one day and 7 of them were already sold. That's much better than receiving 8 watches and putting them in the display and selling them one at a time when someone walks in.

Plus in the meantime, the AD can sell some PM pieces to those who walk in and aren't on any wait list.

[Houston77]

There are plenty of watches to sell. There are just a few SS models that sell the moment they come in.

This thread confuses me.

[seabreeze60]

The AD’s are getting their shipments. Just selling as soon as they get them.

However, it does look unprofessional to have empty shelves.


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[vtsnowplow]

Originally Posted by seabreeze60

The AD’s are getting their shipments. Just selling as soon as they get them.

However, it does look unprofessional to have empty shelves.


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exactly. Rolex AD's near me have empty cases.

[vtsnowplow]

Are they producing less SS sports models, or is the demand than much greater?

[Vipes]

A SA at my AD told me he sold more Rolexes this year than last year. I think most ADs are doing well even with the shortage of SS professional models.

[seabreeze60]

Originally Posted by vtsnowplow

Are they producing less SS sports models, or is the demand than much greater?

Personally, I think the demand has grown. Rolex has missed the trend.

In production you have a 12 to 16 week manufacturing cycles. Add in forecasts, shipping time and production schedulers in Switzerland that are trying to bring in parts. It is difficult to shift a production in a huge plant.




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[Nandor]

Originally Posted by Jacobson

DJs are big sellers.

Mathematically impossible. Unless Rolex is building the wrong watches. Which is possible, I suppose.

[brandrea]

Originally Posted by Devildog

https://www.rolexforums.com/showthread.php?t=631555

[Uppersouth]

Rolex AD’s are enjoying record sales. Rolex production has increased approximately 5%. Empty cases are simply a byproduct of great demand due to the robust US economy. They’re doing fine.

[vtsnowplow]

Originally Posted by Uppersouth

Rolex AD’s are enjoying record sales. Rolex production has increased approximately 5%. Empty cases are simply a byproduct of great demand due to the robust US economy. They’re doing fine.

thanks, looks like just not enough watches to fuel the demand.

[t65tampa]

There are making money. Just not having to deal with as much inventory with carrying costs. Every AD I’ve spoken with in my area has seen their volumes increase even though their supply stock is thinner. That’s a win-win for any retailer.

[Uppersouth]

Originally Posted by vtsnowplow

thanks, looks like just not enough watches to fuel the demand.

Definitely not enough that’s certain. A return to normal will inevitably occur, but only when the economy cools.


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[Rizone]

I think Rolex is producing just a few less than the demand to hold its value as a premium luxury good.

[Uppersouth]

Originally Posted by Rizone

I think Rolex is producing just a few less than the demand to hold its value as a premium luxury good.

Agreed.

[canwatchco]

Originally Posted by seabreeze60

Personally, I think the demand has grown. Rolex has missed the trend.

In production you have a 12 to 16 week manufacturing cycles. Add in forecasts, shipping time and production schedulers in Switzerland that are trying to bring in parts. It is difficult to shift a production in a huge plant.




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Normally what you say would be true. Normally. In this case they haven't missed the trend, they created it. The situation is quite different as the distributors are simply allotting far fewer professional pieces than they have in previous years. FAR FEWER.

And the dealers, G-d bless them, have completely stopped displaying any stainless steel pro models so as not to show any sign of weakness (read: discounting). I will not say that they have plenty of watches in their safes at any moment, but... do not assume that if you don't see it then they don't have it.

The old "we have one in back on hold for someone who is willing to pay full price... we can can call them to see if they are coming, and if they are not and you agree to the same terms..." bum's rush from the Daytona is now in play on just about everything.

Now the difference in revenue from the "discount" model to the "no discount model" is a game changer for the dealer. Add that to the fact the poor availability has caused many frustrated professional series buyers to turn to regular models just to have a Rolex and you have dealers doing excellent volume right across the spectrum of their lines.

Just a short year or two ago, if a buyer wanted a sub or gmt and you had none in stock, they would walk.... Much less of that happening today.

[tyler1980]

they are selling them, they are not sitting. If inventory turnover is up thats a good thing. Im sure they want more watches, but the fact almost no SS professional models even hit the display is great for them and they dont have to discount one bit.

There isnt any evidence the supply has been drastically cut, the demand is way up.

Rolex UK's books indicate that as well as feedback from my AD. They get the same as always and more in fact (recently) since they renovated the store to feature rolex more heavily. The difference is that there are lots more people fighting over the same amount of supply.

[037]

Originally Posted by vtsnowplow

How are AD's making any money if there are no watches to sell?

My local AD has made more money on Rolex in 2018 than any year prior and the year isn't over yet. They're selling and turning over inventory just fine. The difference now is that it doesn't sit around in the showroom collecting dust.

Supply isn't the issue. It's demand.

[jlovda]

Originally Posted by seabreeze60

Personally, I think the demand has grown. Rolex has missed the trend.

In production you have a 12 to 16 week manufacturing cycles. Add in forecasts, shipping time and production schedulers in Switzerland that are trying to bring in parts. It is difficult to shift a production in a huge plant.

Maybe it's just ad fluff but Rolex says it takes a year to make one plus they make all parts in house.

[Brew]

They made the money already, the watches are sold. Now they're pushing you ss Professional watch nuts into the Classic line. Go away, stop spreading the shortage!

[SS Oyster]

Because they do get allotment and sell everything they get, with much of the volume going to the gray market under the 70:30 rule. This means the AD, under pressure to buy from Rolex every month, can unload the TT DJ and ladies watches and remain an AD, but the secondary effect is the gray dealer (who got them out of a jam) gets most of the SS sports models.


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[jonnyz1245]

Originally Posted by canwatchco

Normally what you say would be true. Normally. In this case they haven't missed the trend, they created it. The situation is quite different as the distributors are simply allotting far fewer professional pieces than they have in previous years. FAR FEWER.

Source?

I know of AD's who have sold more SS this year than they did last year and last year they sold more than the year before. Only difference is they don't go into the case.

This has been beaten around here like a dead horse but worldwide demand is UP. Rolex production is up +5% this past year but if demand is up 10-12-15% etc, guess what happens?

[Devildog]

Originally Posted by canwatchco

Normally what you say would be true. Normally. In this case they haven't missed the trend, they created it. The situation is quite different as the distributors are simply allotting far fewer professional pieces IN My LOCATIONS than they have in previous years

Fixed it for you

More demand + more retailers globally + similar production levels = less allocation in other regions




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[jonnyz1245]

Originally Posted by 037

My local AD has made more money on Rolex in 2018 than any year prior and the year isn't over yet. They're selling and turning over inventory just fine. The difference now is that it doesn't sit around in the showroom collecting dust.

Supply isn't the issue. It's demand.

Exactly. Why people find this so difficult to understand is beyond me. It's Econ 101. Yet some people want to spout over and over that Rolex is holding back yada yada yada. They are not. They have a product mix that works for them and given the explosion of IG, the booming economy etc they simply cannot keep up with the demand for SS sports because they choose not to make more and deviate from their strategy.